Abstract: An examination of cigarette taxes and the impact they have on the economy and the welfare of smokers. Cigarette taxes are ways the government can achieve two social purposes. The first is the limit the amount of people who smoke. The government hopes that the rise of prices will hopefully induce people to quit smoking. However, the other objective taken by the government when they raise cigarette tax prices is to increase their revenue. Issues I want to address are: What exactly does the government spend cigarette tax revenues on? How does the spending of the tax revenues affect our economy? Is the welfare of paying cigarette taxes worth it? It was a cold November afternoon about three years past, and I�m minding my leisure as I happen to glance into a tobacco shop just down the road from my current occupation. I�ll always remember exactly what I saw when I peeked into the corridor of that rugged, long-standing tobacco shop. In the corner was standing a man, an elderly but dapper looking fellow, who was lighting a cigarette simultaneously to the time I happened to glimp......

Word Count: 1729
Page Count: 6.9 (250 words a page / double spaced)

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